The Impact Of Family Involvement On Enterprise Technological Innovation

Technological innovation is an investment of enterprises in their own growth.It can not only help enterprises change their industrial structure,but also enhance their competitiveness in the industry.At the same time,it can also promote enterprises to bring new economic value to themselves by integrating resources and cultivating sustainable competitive advantages.Since the reform and opening up,the status of Chinese family firms has become more and more important,and has become an important force to promote economic growth.For family enterprises,evergreen is their long-term goal of unremitting pursuit,and the development of technological innovation activities for family firms with the goal of evergreen is of great significance.At present,there is a general problem of insufficient innovation in family firms.How to improve the level of technological innovation is an important issue for family firms.Based on the goal of improving the level of technological innovation of family firms and the perspective of family involvement,this paper systematically combs the relevant research at home and abroad,and explores the impact of family involvement(family ownership involvement and family management involvement)on technological innovation of enterprises based on the theory of Social-emotional wealth.It also discusses the moderating effects of TMT stability and formal system based on the theory of Upper Echelons theory and Institutional Theory respectively.On this basis,this paper combines the development of family firms,and summarizes the relationship of CEOs in volved in family management rights,then explores the influence of different types of CEO relation ship on enterprise technological innovation.Through theoretical deduction and empirical research,this paper draws the following main conclusions:(1)The higher of family management involvement is,the more family firms attach importance to the maintenance of extended social-emotional wealth,so as to attach importance to the long-term development of enterprises and then actively carry out technological innovation activities;(2)the higher of family management involvement is,the family members are closely linked with enterprises,family CEO For the long-term development of family enterprises,technological innovation activities will be actively carried out;(3)TMT stability will weaken the positive correlation between family ownership involvement and technological innovation of enterprises,but TMT stability will not affect the positive correlation between family management involvement and technological innovation of enterprises;(4)the more perfect the formal system,the family enterprises will acquire externality.The more convenient the funds and resources are,the more perfect the formal system will further strengthen the positive correlation between family involvement and technological innovation;(5)the closer the relationship between family CEO and the actual controller,the weaker the intensity of technological innovation activities in family enterprises;the farther the relationship between family CEO and the actual controller,the stronger the technological innovation activities in family enterprises.This paper fully considers the influence of different dimensions of family involvement on enterprise technological innovation,and also considers the influence of internal and external situational factors on the relationship between family involvement and enterprise technological innovation.On this basis,it also closely combines the cultural background of China,and further considers the distance of family CEO's relationship in family management involvement on enterprise technological innovation.This paper not only enriches the theoretical research on the relationship between family involvement and technological innovation,but also provides some reference for family firms to carry out technological innovation activities in practice.